The planned 150,000 metric tons (MT) sugar importation of the Sugar Regulatory Administration (SRA) by November may be a little too late as this year’s milling is expected to end sooner, and even probably too little, according to the National Federation of Sugarcane Planters (NFSP).
The group’s comments came after the SRA released last Tuesday of Sugar Order (SO) 2 for crop year 2022-2023 which allows the entry of 75,000 MT of refined sugar for industrial users and another 75,000 MT for the use of consumers.
Under SO2 signed by President Ferdinand Marcos Jr. as concurrent SRA chairperson and Department of Agriculture (DA) secretary, the importation will be opened to all international sugar traders registered with the SRA in good standing.
The volume must arrive in the Philippines no later than Nov.15, 2022 for industrial users such as food, confectionaries, biscuits bread, candies, milk, juice and beverage manufacturers that use refined sugar in the manufacture of their finished products for sale exclusively in the domestic market.
SO2 identified consumers as wholesalers and traders engaged in selling sugar in bulk to retailers who in turn sell sugar in small quantities to the general public.
Enrique Rojas, president of the NFSP, said it is “too early to tell” if the 150,000 MT of imported sugar will be enough to augment the expected local production shortage for the current crop year.
“What’s clear is that its arrival on or before November 15 is quite late. The shortage has forced several sugar-using companies to stop their operations, displacing hundreds of workers, while retail refined sugar prices are still at P95 to P100 per kilogram (kg), despite the much-sensationalized raids on warehouses of alleged hoarders and smugglers,” Rojas said n a statement.
He said the arrival of imported sugar by mid-November – when most mills are operating and sugar supply is substantially stabilized – might dampen millgate prices but might not substantially lower retail sugar prices.
The public, he said, has become used to the high level of prices of sugar in the market.
Rojas added several mills have started milling early for the current crop year to take advantage of the the high mill gate prices which have reached more than P3,000 per bag. Some planters are rushing their cane harvest to avail of the unprecedented millgate prices.
“Thus, the milling season might end much earlier than usual, and the sugar shortage this crop year, as evident in the production estimates in SO 1, might be felt also much earlier than usual,” Rojas said.
Under SO1, the SRA said it expects local sugar production to increase by 5 percent for crop year 2022-2023 to 1.88 million MT from 1.79 million MT in the previous crop year ending August this year.
The amount is short to serve the expected 2.03 million MT withdrawal for the period.
SO1 dated August 26 but was released only on Tuesday allocates 100 percent of local production of sugar for domestic consumption.
The Kilusang Magbubukid ng Pilipinas (KMP) criticized the SO2, saying the importation will not strategically solve the sugar supply and price problem but will further plunge the local industry to a deeper crisis.
Rafael Mariano, KMP chairman, said in a statement the sugar scenario can be compared to those on rice, meat and fish wherein importation has not resulted in the automatic reduction in retail prices.
“Specifically for farmworkers in sugar plantations, they need additional wages and benefits … The prices of fertilizer and fuel must be pulled down to lower the cost of sugar production. Overall, the Marcos administration must rethink and reverse its policies on agricultural trade liberalization that has severely damaged our agriculture and fisheries sectors,” Mariano said.
SRA acting administrator Alba said the SRA Board passed the importation program in SO2 to serve both industrial users and consumers amid the expected tightness of sugar supply for the current crop year.
Alba said the import program is just a “stop gap measure” as they expect supply from the mills to flow into the market as refineries are expected to be in full operation by next month.
“Some sugar mills have started milling and we will soon see a steady supply of sugar. Nevertheless, SRA is regularly monitoring the supply and demand situation so we can act accordingly,” Alba added.
